Shruti Synthetics Ltd. vs Natraj Suitings Pvt. Ltd.

Gopal Krishan Vyas, J.—In this appeal the order dated 14th March, 1997 passed by the District Judge, Udaipur in Civil Original Case No. 6/1995 is under challenge, whereby, the learned District Judge dismissed the application filed u/s 20 of the Arbitration Act, in which, the prayer was made for appointment of Arbitrator.

I have perused the impugned order dated 14th March, 1997.

The learned District Judge, Udaipur dismissed the application on the ground that as per condition No. 27 of the Contract, it was agreed between the parties that for the payment of outstanding dues, the sellers will be fully entitled to take appropriate action under civil or criminal law. Therefore, while taking into consideration, the condition No. 27 of the Contract, the application filed by the appellant for appointment of Arbitrator u/s 20 of the Arbitration Act was dismissed.

Condition No. 27 of the Contract is as follows:

The sellers will be fully entitled to take appropriate action under civil or criminal law at their option in case of failure of the buyers to pay the outstanding dues to the sellers within three months from the date of sale or in the event of any breach of any term of the contract on the part of the buyers, or in respect of any matter incidental to or arising from the contract or at the option of the sellers, if any dispute, differences or question arises regarding the interpretation of any terms of this contract, the same will be settled by arbitration agreed between the parties.

It is obvious from the above condition No. 27 that there is remedy available in the Contract for payment of outstanding dues whereby sellers are entitled to take appropriate action under civil or criminal law, the learned District Judge has not committed any error while passing the impugned order dated 14th March, 1997. Hence, there is no force in this appeal.

The misc. appeal is dismissed accordingly.